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How can trade liberalization exist on a nondiscriminatory basis versus a discriminatory basis? What are some examples of each?
Monopoly is inefficient as it charges prices higher than marginal costs. Is it feasible for the government to regulate a natural monopoly by setting prices equal to marginal costs? Roche plans to sell Tamiflu at higher prices in Europe and North Amer..
John buys shoes for $1 a pair and socks for $1 a pair. His annual income is $20. Now suppose the government institutes two new programs: first, it taxes shoes, so that shoes now cost John $2 a pair. Second, it gives John an annual cash gift of $10. ..
Over the next three years, a firm is expected to earn an economic profit of $900,000 in the first year, $800,000 in the second year, and $700,000 in the third year. After the end of the third year, the firm goes out of business. If the risk-adjusted ..
What is the evidence of wrongdoing here How does business use politics here Is this government failure Is this market failure Who benefits and how Who loses What is the role of the media
At which interest rate will an individual be indifferent between receiving $50 per year every year forever (starting one year from now), and receiving $1000 today?
Look at consumer economics from the global perspective, and list five issues or areas of concern that require international cooperation.
Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.
Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate and profit from the interest-rate differential.
Average citizens are not concerned about the incidence and efficiency of taxes when they debate tax issues. They are concerned primarily about the fairness of the tax system. Economists have proposed two conflicting principles of fairness in any tax ..
City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers. If City Farm has $5 million per day in collections and $3 million per day in disbursemen..
Sam is interested in buying two types of goods, x and y. He can either use all his income to buy 3 units of x and 9 units of y, or 9 units of x and 3 units of y. If he spends all his income on x, how many units can he buy?
Illustrate what are the major determinants of price elasticity of demand. Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic.
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